SYLLABUS

GS-2: India and its Neighbourhood- relations.

Context: Recently, the Prime Minister of India attended the 60th Independence Day ceremony of the Republic of Maldives as the guest of honour. 

More on the News

• The event featured a military parade and vibrant cultural performances by children and traditional artists.
• The President of Maldives called the visit “a defining visit that sets a clear path for the future of Maldives–India relations. 
• He expressed gratitude to the Indian government for its continued support and steadfast friendship. Muizzu said the 60 years of diplomatic relations between the two countries reflected the shared history and an enduring partnership. 
• This visit to the Maldives is seen as a major turnaround in bilateral ties after a spell of strain and tension. 
• It assumes significance as President Muizzu, known to be close to China, came to power in the island nation in November 2023 on the back of an “India Out” campaign.

Key highlights of the Prime Minister’s Visit

• India announced a ₹4,850 crore line of credit to support the Maldivian economy.
• India reduced the Maldives’ annual debt repayment obligation by 40%, from $51 million to $29 million.
• Both nations agreed to initiate talks on a Free Trade Agreement (FTA).
• Joint issuance of commemorative stamps on the 60th anniversary of the establishment of India-Maldives diplomatic relations.
• MoU on recognition of the Indian Pharmacopoeia (IP) by the Maldives
• Network-to-Network Agreement between India’s NPCI International Payment Limited (NIPL) and the Maldives Monetary Authority (MMA) on UPI in the Maldives

Inauguration and Handover to the Maldives

• Handing over of 3,300 social housing units in Hulhumale under India's Buyers' Credit facilities 
• Inauguration of the Roads and Drainage system project in Addu city 
• Inauguration of 6 High Impact Community Development Projects in the Maldives 
• Handing over of 72 vehicles and other equipment 
• Handing over of two BHISHM Health Cube sets 
• Inauguration of the Ministry of Defence Building in Male

India-Maldives Relationship

Importance of the Maldives for India

• Indian Ocean Security: It helps India secure vital Sea Lines of Communication (SLOCs), which are essential for energy and cargo shipments.
• Counter balance to China: It plays a vital role in India’s “Neighbourhood First” and “Security and Growth for All in the Region (SAGAR)” doctrines; supports India’s “Diamond Necklace Strategy” against China’s “String of Pearls”.
• Regional Stability & Anti-Terrorism: Cooperation with the Maldives is essential to combat piracy, drug trafficking, and sea-based terrorism in the region.

Source:

https://indianexpress.com/article/india/op-sindoor-no-safe-haven-terrorists-enemies-india-pm-modi-10153052/ https://www.theweek.in/news/world/2025/07/28/from-diplomacy-to-daily-life-why-maldives-and-india-remain-deeply-connected.html https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2148723 https://www.newsonair.gov.in/india-signs-6-mous-with-maldives-to-enhance-cooperation-in-multiple-sectors-extends-rs-4850-crore-line-of-credit/#:~:text=The%20key%20areas%20include%20fisheries,activities%20in%20the%20Island%20Nation.